Ukraine heads for first economic decline since 2022 as Russian strikes take their toll

Ukraine's economy is projected to decline by 0.4% this year due to intensified Russian attacks, marking the first contraction since 2022. The National Bank of Ukraine revised its growth forecast from 1.8% to a decline, attributing this to blockades and attacks on key industries, particularly metallurgy. Farmers are expected to face losses as export routes remain blocked, while inflation has surged to 10%, with predictions of reaching 12.5% by 2026. To combat inflation, the bank raised interest rates to 16.5%. Despite these challenges, Ukraine anticipates significant foreign support for its budget and defense needs, aiming for gradual recovery in the coming years.